1. Balanced funds aim at balancing long-term capital and stable income. Usually, a certain proportion of funds are invested in fixed-income industrial crops such as bonds and convertible corporate bonds to obtain stable interest income and control risks, while the rest are invested in stocks to pursue capital gains. Balanced fund not only buys a certain proportion of growth stocks, but also buys some value stocks. It is a relatively moderate type of fund, and its risk and return characteristics are between growth and value funds. A balanced fund is one whose investment goal is to gain current income and pursue long-term value-added. Usually, the funds are dispersed in stocks and bonds to ensure the safety and profitability of the funds.

index fund is a fund that invests in an indexical way. Simply put, it is to choose a certain market index to track and passively invest in the market, so that the income of the fund is consistent with the income of this market index.

second, stock funds, mainly investing in stocks, have the greatest risks and the highest expected returns; The bond type is mainly investment bonds, with low risk and low expected return; The balanced type pays attention to both stocks and bonds, and pays attention to the rational allocation of assets between stocks and bonds. Its risks and benefits are between stock funds and bond funds.

for index funds, they belong to the big category of stock funds, except that they pursue passive investment strategy, buy stocks mainly by copying the index, and open positions according to the composition of the market index, instead of actively selecting stocks. In mature markets, the risk is generally lower than that of active equity funds, and the income will not be worse than that of active equity funds in the long run. Because the stock market is still not perfect, there is a phenomenon that the performance of active stock selection funds is better than that of index funds.